Crazy! Trump fires back at Beijing with threat of new tariffs on $200 billion in Chinese goods!

[saltyashell]

First pay them back 1tillion dollar then talk big

US treasury bonds are like investments a country makes. China has nearly 2 trillion invested in us bonds. If cn tries to disrupt american economy , its own investment gets devalued and cn is left broke as its a export oriented economy. Usa has a massive internal market and all the knowledge it needs and is not really dependent on other countries.
Interesting days.

 

[Viva_Viet]

Trump is really a completely chaotic character. He just likes to bully others but that's not how economies work. Not to say, I don't enjoy watching China squirm but still, it is just bizarre.

Trump want to sell billion of billion USD weapons to CN rebels against king XI. Thast how economies work.

 

[bobsm]

US-China Trade: From 'Grand Bargain' towards trade war?
Allan von Mehren Allan von Mehren
Danske Bank A/S

The US-China trade frictions escalated further over the weekend and we are unfortunately moving away from the ‘Grand Bargain' scenario towards the ‘trade war' scenario.

While there are no winners in a trade war, the US is focused on protecting US technology and sees the tariffs on Chinese tech products as a legitimate action. China clearly disagrees, which is why we believe we are heading into a tit-for-tat scenario, in which we believe the US will soon raise the amount subject to tariffs to USD150bn.

The Chinese retaliation pattern shows that China intends to follow Donald Trump with ‘equal scale and equal strength' on every move he takes against China.

Even if the amount subject to tariffs is raised to USD150bn, our rough calculations suggest it would not reduce global GDP by more than 0.2%. The calculations are very uncertain though and it is likely the effects would be front-loaded. This suggests downside risk to growth in the second half of 2018 and early 2019 but not a complete derailing of the global recovery.

Although not part of the US-China trade spat, Europe is looking fragile as growth has already slowed and the fiscal policy is less of a support compared with the US.

Tit-for-tat just started again

While we have been arguing for a ‘Grand Bargain' scenario since the US-China trade spat started, the recent development suggests we are moving more towards the ‘trade war' scenario. US President Donald Trump on Friday announced 25% tariffs on Chinese goods worth USD50bn within tech products and warned that the US would impose additional tariffs should China take retaliatory measures.

However, this did not stop China from saying immediately that it would retaliate with ‘equal scale and equal strength'. On Friday evening, China announced tariffs on US products of an equal amount and implemented them on the same date (6 July) as the US intends to implement tariffs on China. At the same time, China pulled back from the deal made with the US on 21 May, which, among other things, involved buying more US products worth USD70bn. The US products subject to tariffs in China will be mainly within agriculture, seafood and autos.

With the move China sends a clear signal that it will follow Trump one-to-one on whatever move he takes against China. Although China has a total of only USD130bn to put tariffs on (versus the USD500bn of Chinese imports into the US), China has other tools to use in the trade conflict. The strongest is probably a consumer boycott of US consumer goods but it can also use restrictions on investments in China by US companies as there are far more US companies in China than the other way around.


https://www.fxstreet.com/analysis/us-china-trade-from-grand-bargain-towards-trade-war-201806181025

 

[qwerrty]

Trump want to sell billion of billion USD weapons to CN rebels against king XI. Thast how economies work.

china will join tpp, become the boss of the group and make vietnam their b1tch

 

[faithfulguy]

china will join tpp, become the boss of the group and make vietnam their b1tch

Vietnam is not a bitch, but the source of brides for poor Chinese farmers, coal miners and fishermen.

 

[Mista]

it can also use restrictions on investments in China by US companies as there are far more US companies in China than the other way around.

That will be a silly move. So many countries want more foreign investments for jobs, capital inflow, tax, technology and know-how transfer, and you want to restrict investments?

US investments benefit China more than it benefits the US as these corporations doesn't depend on Chinese technology; they can easily shift their operations to other low cost countries. Not to mention the damage in investors' confidence from other countries.

It will be like the Vietnamese burning Chinese factories. Who actually loses more?

 

[faithfulguy]

That will be a silly move. Every country wants more foreign investments for jobs, capital inflow, tax, technology and know-how transfer, and you want to restrict investments?

US investments benefit China more than it benefits the US as these corporations doesn't depend on Chinese technology; they can easily shift their operations to other low cost countries. Not to mention the damage in investors' confidence from other countries.

It will be like the Vietnamese burning Chinese factories. Who actually loses more?

Not trump. Trump want to decrease Chinese investment in the US. I’m sure Trump would refuse and prevent Alibaba investing in the US to create more jobs for America.

Trump is an idiot.

 

[Zibago]

interesting, this is like gambling who shall be the first to chicken out in this poker game, we shall see how much cards both China and US carry in this trade war...let see if China has the gut to meet US's threat . China still holding US's corporate investment in China such card to play: Ford, Apple...either China withstand the trade war or be collapse like Japan after the plaza accord.

Just stop MAGA hats and T shirts export he will change

 

[Yaseen1]

u.s public will suffer ultimately.already there is inflation and there will be hyperinflation in u.s as there is no alternative to chinese goods at present.tney are cheapest and best value for money

 

[Mista]

Not trump. Trump want to decrease Chinese investment in the US. I’m sure Trump would refuse and prevent Alibaba investing in the US to create more jobs for America.

Trump is an idiot.

Well like I said, he's the type that will cut off the nose to spite the face. Both side loses.

But didn't he welcomed Chinese investments some time back?

 

[ckf]

Trump is baiting China into an economic war and crippling Chinese growth by escalating trade tensions. He knows that China can't response with equal retaliation because the total goods and services exported to China is only $180b last year. Targeting other economic interest will give the US excuse to escalate the trade war into an economic war.

Don't fall for it.

Deng said that in the 80's, we are now in the 21st century.

China has to stand up to US at some point, so a trade/financial war based on principal of global trade can only enhance long term global trade initiatives. We are only in initial stage of posturing despite these tariffs. I don't think Wall Street has the appetite to initiate this trade war since both China and US are so interconnected. ​

Fallout from global trade war would decimate wall street similar to 2008 financial crisis. Differences this time is global financial institutions will not have the resource to contain it. Individual nations, and trading blocs will struggle to contain the fallout. Chinese manufacturing and financial sector will also be major losers, but

China's financial control mechanism are strong of enough to hold its banking sector together. ​

US treasury bonds are like investments a country makes. China has nearly 2 trillion invested in us bonds. If cn tries to disrupt american economy , its own investment gets devalued and cn is left broke as its a export oriented economy. Usa has a massive internal market and all the knowledge it needs and is not really dependent on other countries.
Interesting days.

US no longer has the manufacturing capabilities, the world has evolved greatly in the last 20 years. You need power, logistical supply chain and trained employees which takes years to build up. Besides, environmentalist will protest and disrupt new manufacturing infrastructure building even if Trump wants to rebuild America into the global manufacturing center. China exports only account for 18.54% of China GDP, and US accounts for less than 3.68% of China's GDP. People generally don't understand global trade, China's surpluses are inflated because many of the components are from other Asian neighbors like Japan, Korea, Taiwan, and raw material from SE Asia. The surplus looks great, but China profits are less than 3%. US companies like Qualcomm and apple, and Japanese/Korean suppliers have profit margin closer to 10%. That's why these countries have much higher GDP per capita. People should really learn about economics of trade rather than listening to idiots like Trump.
https://atlas.media.mit.edu/en/profile/country/chn/

 

[dy1022]

Trump is baiting China into an economic war and crippling Chinese growth by escalating trade tensions. He knows that China can't response with equal retaliation because the total goods and services exported to China is only $180b last year. Targeting other economic interest will give the US excuse to escalate the trade war into an economic war.

Don't fall for it.

Beijing will hit back very hard this time,wait and see !

official response:http://news.ifeng.com/a/20180619/58788356_0.shtml

not limited by quantity but also quality.

It's nothing wrong for a singaporen to worship US like a king. But we are different!

 

[Offshore]

The one hurt the most is American Middle class, they must pay alot for Daily product.

 

[gambit]

US no longer has the manufacturing capabilities,...

Do you say that because of extensive personal experience in manufacturing? Or do you say that just to sound smart and get 'Thanks' for criticizing US?

People on this forum have been making predictions about US supposedly failure in manufacturing for yrs, and yet today, none of you predicted Trump, oil shale, exports, and now below %4 unemployment. Sure, am sure you can find lots of articles that says negative things about US manufacturing, but they are from the same crowd who also proclaimed that Obama-era high unemployment would be the norm permanently. For every negative article you can find, there is one matching positive one. How many times have people said that oil would be the downfall of America? Or China dumping US Treasuries? And so on and on...And ALL of you ended up wrong. When people with economic and finance degrees were wrong about US, why should you matter?

 

[S10]

Nice, and 90% CN will be in chaos in 2023 as we predicted. Time to Soviet-US to tear CN to pieces and make billion of billion USD from selling weapon to CN resistances forces .

How many times a day does the typical monkey daydream? It seems like you do it quite often.